Lion Merchandising Inc. is a company specializing in selling merchandises across different categories. Analysis of the...

 

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Lion Merchandising Inc. is a company specializing in selling merchandises across different categories. Analysis of the 2020 financial statements of Lion Merchandising Inc. provides following information: a. Net income for 2020 was $1,000,000. b. Inventory levels increased by $120,000 during 2020. c. Accounts payable to suppliers of merchandise decreased by $30,000 during 2020. d. The company sold a piece of land, which had a cost of $500,000. The land was sold in 2020 for $700,000 cash, resulting in a gain of $200,000. e. Dividends of $100,000 were declared in November 2020, to be paid in January 2021. f. Dividends of $150,000, declared in November 2019, were paid in February 2020. g. Depreciation expense for 2020 amounted to $90,000. Based on the information provided above, prepare the cash flows from operating activities section of the statement of cash flows using the indirect method for the year 2020. Lion Merchandising Inc. is a company specializing in selling merchandises across different categories. Analysis of the 2020 financial statements of Lion Merchandising Inc. provides following information: a. Net income for 2020 was $1,000,000. b. Inventory levels increased by $120,000 during 2020. c. Accounts payable to suppliers of merchandise decreased by $30,000 during 2020. d. The company sold a piece of land, which had a cost of $500,000. The land was sold in 2020 for $700,000 cash, resulting in a gain of $200,000. e. Dividends of $100,000 were declared in November 2020, to be paid in January 2021. f. Dividends of $150,000, declared in November 2019, were paid in February 2020. g. Depreciation expense for 2020 amounted to $90,000. Based on the information provided above, prepare the cash flows from operating activities section of the statement of cash flows using the indirect method for the year 2020.

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Cash flow from Operating Activities whe Fear 2020 Judire d method for the Particulars M... View the full answer